A guide for members RPS 65

Transcription

1 A guide for members RPS 65

2 Disclaimer The iformatio provided i this guide is iteded for geeral iformatio ad illustrative purposes. Your beefits will be worked out i accordace with ad subject to the goverig trust deed ad rules ad relevat legislatio. Although every effort has bee made to esure the iformatio give i this guide is accurate, oe of the iformatio give ca give you, or your beeficiaries, legal rights to beefits that differ from those provided i the pesio trust ad rules. The Trustee, Network Rail ad RPMI give o warraty ad accept o resposibility for the accuracy of the iformatio provided, or for your reliace o that iformatio. Therefore, the iformatio provided should ot be relied upo to make ivestmet or other decisios.

3 Cotets A guide for members Glossary 4 Welcome to RPS 65 6 Beefits of membership 7 Beefit types 8 Cost 10 Savig more 12 If thigs chage 14 Beefits for depedats 16 Makig the most of your beefits 18 Your tax limits 19 Thikig about retirig? 20 Optios at retiremet 22 Combied membership 24 Importat otes 25

4 01Glossary A guide for members Glossary The Committee A Pesios Committee which Network Rail has set up with equal umbers of members ad employer s appoitees dedicated to the Network Rail Sectio. The Committee works with the Trustee to maage the Network Rail Sectio for you ad your depedats. Basic State Pesio Basic State Pesio has bee replaced for people who reach State Pesio Age o or after 6 April The Sectio however, will cotiue to use Basic State Pesio as published by the govermet aually. Fial average basic State Pesio The sigle perso s basic State Pesio averaged over the 12 moths before you: take your beefits; leave the Sectio of your Scheme; or die; whichever is earlier. Fial average pesioable pay Your pesioable pay averaged over the 12 moths before you: take your beefits; leave the Sectio of the Scheme; or die; whichever is earlier. Pesioable pay Your yearly rate of pesioable pay o each 1 April. Rules A documet which sets out i detail how the Network Rail Sectio of the Scheme works ad what beefits are provided. The Sectio The Network Rail Sectio of the Railways Pesio Scheme. Trustee The Railways Pesio Trustee Compay Limited. More olie - Read as you eed available

5 01 Glossary Miimum Pesio Age The earliest age at which you ca apply to take your pesio beefits. Geerally, if you were a member of the NR Sectio or ay other sectio of the Railways Pesio Scheme o 5 April 2006, you may be able to claim your pesio beefits from age 50 if you apply for immediate paymet o leavig employmet. If you were t a member o this date, your Miimum Pesio Age will be 55. You ca check this with RPMI. The govermet had idicated that the miimum age people ca access their beefits will rise to 57 from 2028, whe it plas to lik the miimum age to rises i the state pesio age. Pesioable Restructurig Premium This is part of your pay which is treated as pesioable from a certai date. Pesioable Restructurig Premiums (PRPs) are used to calculate cotributios ad beefits payable from the Sectio. A PRP oly affects beefits accrued from the date it starts. Sectio pay Pesioable pay (icludig all pesioable restructurig premiums), less 75% of the sigle perso s basic State Pesio. Your Sectio pay will ever be less tha half of your pesioable pay (icludig all pesioable restructurig premiums). If you joied the Sectio before 1 July 2012, please refer to the sectio i this booklet called Combied membership to see how Sectio pay differs for your service before July /16 RPS

6 02Welcome A guide for members Welcome to RPS 65 You re a member of a highly valued pesio scheme. So how do you feel about retiremet? Is it still a log way off or approachig fast? Ad what does it mea to you? Chaces are, you have t give it much thought because life s busy eough as it is. That s why it s importat for you to read through this RPS 65 guide whe you ve got time. From April 2016, Network Rail itroduced importat chages to its Sectio of the Railways Pesio Scheme (RPS) to esure it remais affordable ad sustaiable. This guide icludes lots of useful iformatio about gettig the most out of your pesio, the beefits of belogig to RPS 65, ad aswers to your importat questios. Wherever you see this symbol, it meas more detail is available i Read As You Need leaflets o You ca also register o this website to view your RPS 65 pesio details, ad play a active role i plaig your retiremet. Importat ote: If you were a member of the Network Rail Sectio before 1 July 2012, please see the sectio Combied membership i this booklet for details about your combied membership i RPS 60 ad RPS 65. If you have a geeral query about your pesio, please call the Helplie o Now is the perfect time to start gettig the most out of tomorrow by plaig for it today. More olie - Read as you eed available

7 03Beefits of membership A guide for members Beefits of membership Here s the good ews! You re ever too youg or too old to start plaig your retiremet. Retiremet is o loger see as the ed of the road ad may people do t wat to chage their lifestyles because of it. Beefits By becomig a RPS 65 member of the Network Rail Sectio, you have take a importat step towards buildig your fiacial future. So what are the beefits of belogig to the Sectio? Most importatly, you will get a pesio for life whe you retire (exceptios such as optig out are explaied later i this guide). The amout you get depeds o: how log you have bee a member of the Sectio; ad your fial average pesioable pay, plus other beefits such as BRASS fuds. You ca decide how to make your beefits work best for you. For example, you ca choose to covert some of your RPS 65 pesio ito a lump sum (curretly tax-free) whe you retire. You ca also top up your beefits through BRASS, which is the Additioal Volutary Cotributio (AVC) savigs facility for the RPS. Protected Rights If you were a member of the British Rail Pesio Scheme o or before 4 November 1993, you may have certai legal rights to joi the Sectio. Cotact the Network Rail Pesios Team if you are usure about your right to joi. Your Protected Rights Uder curret Rules, pesios are paid every four weeks ito your bak accout. 10/16 RPS

8 04Beefit types A guide for members Beefit types You may be eligible for differet types of Scheme beefits, depedig o whe you retire or chages i your circumstaces. These terms ca be cofusig, so here is a guide to the beefit types ad whe you ca start claimig them: Normal retiremet beefits These ca be take at your 65th birthday (Normal Pesio Age) or at ay time betwee the ages of 65 ad 75. Early retiremet beefits You may qualify for early retiremet from age 55, or 50 if you have a protected Miimum Pesio Age, but your beefits will be reduced compared to what you would get at your Normal Pesio Age. Ill-health beefits If you retire from employmet with Network Rail through ill-health, you ca apply for your beefits if: you have five years cotiuous compay service (but ot yet reached five years pesioable service); or you have bee i your Sectio for at least five years, or have at least five years membership i the Sectio (icludig trasferred membership) ad a medical expert chose by the Committee provides evidece that you ca t work i your curret job or ay other suitable job (other tha temporarily); you are uder age 65; ad you apply withi a year of leavig work with Network Rail. If you are uder 65 ad start workig agai while claimig ill-health beefits, your pesio may be reduced or suspeded, depedig o: your earigs; or if the Committee receives medical advice that you are able to ear a icome. Whe you reach 65 you ca claim the full pesio agai, eve if you carry o workig. A guide for members applyig for icapacity beefits More olie - Read as you eed available

9 04 Beefit types Preserved beefits If you leave the Scheme before you are able to receive your beefits, you become a preserved member. This meas you do t pay ay more cotributios ad you do t build up ay more beefits i the Sectio. However, your preserved beefits icrease each April i lie with Orders made uder the Pesios (Icrease) Act 1971 ad i accordace with Scheme Rules, from the date that your membership eds. These beefits ca be paid from age 65 without ay reductios; or they ca be left i RPS 65 up to age 75 if you wish. If you decide to take your beefits after age 65, your beefits will be icreased to reflect the later paymet date. Preserved members ca apply to take their beefits from the Sectio before age 65; the beefits payable would be reduced to reflect retiremet before Normal Pesio Age (age 65). You ca apply to trasfer your preserved beefits to aother registered pesio scheme. Trasferrig beefits Trasferrig-out Preserved members may be able to trasfer their beefits to aother Sectio withi the RPS, or to a differet pesio scheme outside the RPS. A trasfer-out would iclude the value of your BRASS accout (if applicable) up to the date of trasfer. Trasferrig beefits i from aother RPS Sectio You ca trasfer-i beefits from aother Sectio. A guide for members trasferrig from oe sectio to aother Trasferrig beefits i from outside the RPS RPS 65 does ot accept trasfers-i from exteral pesio schemes with the exceptio that the NR Sectio will accept trasfers-i from the Network Rail Defied Cotributio Pesio Scheme (NRDC) ad the Network Rail CARE Pesio Scheme (CARE). Trasfers-i from the NRDC ad CARE Schemes would be ivested i BRASS oly. At retiremet you ca use these fuds to provide a cash lump sum (up to HMRC limits), or covert to additioal pesio. Compulsory trasfer of employmet (TUPE) If your job is trasferred to aother employer, because of a cotract or busiess sale or chage i frachise, you ca o loger be a member of RPS 65. If you are a protected perso or have a idefeasible right, uder the Railways Act 1993, you will cotiue as a member of the Scheme. Your ew rail employer must give you the optio of joiig their Sectio of the Scheme. RPMI will cotact you oce your ew membership is set up, ad will sed you trasfer iformatio about your pesio optios withi six moths of your employmet trasfer. Your Protected Rights If you work part-time You are etitled to the same beefits as your fulltime colleagues, based proportioately o your part-time hours (compared to the full-time hours) for your job. For example: ill-health beefits: The umber of years of employmet or membership you eed to qualify for these is ot affected by the umber of hours you work. depedats beefits: The amout of beefit is calculated based o your part-time hours. cotributios: These are calculated usig the equivalet full-time rate of Sectio pay for your job, but reduced i proportio to the hours you work. AVCs: You are etitled to the same terms as your full-time colleagues. A guide for members o workig part-time 10/16 RPS

10 05Cost A guide for members Cost Pesio cotributios receive tax relief.* Members ad the compay both pay regular cotributios ito the RPS. How cotributios are calculated The rate of ormal cotributios ca go up or dow, i order to meet the cost of payig curret ad future beefits from the Sectio. Geerally, the cotributio rate is reviewed every three years by a exteral adviser to the Trustee kow as the Scheme Actuary. The table below shows the curret cotributio rates for RPS65: RPS65 Protected default ormal cotributios Member Employer 6.52% 9.78% RPS65 Protected extra cotributios 2016 optio Member Employer 8.30% 8.10% RPS65 No-protected default ormal cotributios Member Employer 7.00% 9.30% RPS65 No-protected extra cotributios 2016 optio Member Employer 8.78% 7.62% Member ad employer cotributios to RPS 65 are ormally fixed i July each year. Cotributios are deducted as a percetage of your Sectio pay. Sectio pay is set out i the glossary but is based o your pesioable pay at 1 April with a deductio of 75% of the basic State Pesio as at 1 April. This amout is fixed for the ext 12 moths, uless: there is a chage i the agreed cotributio percetage; a chage i your circumstaces, such as takig statutory materity, paterity or adoptio leave; or you chage your workig hours e.g. goig part-time. From April 2016 members of the RPS pay higher Natioal Isurace cotributios because govermet abolished cotractig-out. * Tax relief is limited by the Aual Allowace, which is curretly a maximum of 40,000 for 2016/17. Visit for detailed iformatio ad updates. A illustratio of your Aual Allowace is icluded i your Aual Pesio Estimate each year. More olie - Read as you eed available

11 05 Cost Thik SMART! Participatig i the SMART arragemet does ot affect your pesio beefits. It meas that: Network Rail pays your ormal cotributios o your behalf; your cotractual pay is adjusted to reflect this chage; ad your take-home pay goes up, because you are payig less Natioal Isurace Cotributios. RPS65 members will participate i SMART automatically. I limited circumstaces some members caot participate i SMART i this evet the payroll system will automatically remove the member from the SMART arragemet. There is o volutary SMART opt-out for RPS65 members. Three ways your pesioable pay ca icrease 1. Sice July 2012 pesioable pay rises, e.g. from your yearly pay review, or other o-promotioal pay icrease, are capped by the aual pesioable pay cap. The cap was the maximum of the Retail Prices Idex (RPI) for the previous September plus up to 0.5%, however from 1 April 2016 the aual cap has bee adjusted to the RPI oly. This cap applies every year from 1 April to 31 March. 2. Members who chose the oe-off optio to pay the RPS Extra Cotributios 2016 will have o-promotioal pay icreases above the aual RPI cap, treated as pesioable for future service oly from the date of the o-promotioal pay award; this is kow as Pesioable Restructurig Premium (PRP). 3. Separately, ay icrease to your basic pay as a result of a promotio which ivolves a chage i Grade or Bad will be treated as pesioable for future service oly from the date of the promotio. This is kow as a Pesioable Restructurig Premium (PRP). Your cotributios ed whe you: Stop workig for Network Rail; Opt-out of RPS 65; Start claimig your beefits; Reach age 75, or have 40 years membership (whichever is earlier). Protectig the value of your beefits The Scheme provides two valuable types of protectio agaist iflatio: While you are a active RPS 65 member, as your pesioable pay grows, so do your beefits; Whe you take your beefits, or become a preserved member, your pesio icreases i lie with Orders made uder the Pesios (Icrease) Act 1971 ad Scheme Rules. Traditioally this icrease has happeed i April. The Cosumer Prices Idex (CPI) is the measure of iflatio curretly used for these icreases. 10/16 RPS

12 06Savig more A guide for members Savig more BRASS AVCs You ca top up your beefits by payig Additioal Volutary Cotributios (AVCs) ito your ow BRASS accout. AVCs are take from your earigs before icome tax is deducted, meaig extra savigs for you. BRASS allows you to decide: how much you wat to cotribute*; how you ivest your cotributios; whe you start - ad stop - makig co tributios. You have to take your AVC beefits at the same time as your mai Scheme beefits or you could trasfer-out your BRASS fuds oly to aother pesio arragemet (o Network Rail). Geerally you ca cotribute up to 75% of your taxable earigs to RPS 65 as AVCs through payroll (less ormal cotributios or SMART reductio). You ca also pay extra cotributios directly to the Scheme by cheque, but you are resposible for reclaimig tax relief (if ay) o these paymets from HM Reveue ad Customs (HMRC). *If you are a protected perso you ca oly pay 15% of your aual taxable earigs, icludig ormal Scheme cotributios (or SMART reductio). If you wat to cotribute above 15% you ca waive part of your protected right, specifically i respect of future BRASS cotributios. More olie - Read as you eed available

13 06 Savig more AVCs may be particularly suitable if you: have earigs which do ot qualify for Scheme pesio, such as bouses ad overtime; are thikig about takig your beefits early (as log as you meet certai requiremets); or simply wat to save a bit more towards retiremet. 10/16 RPS 65 You ca check your last years Aual Allowace i your Aual Pesio Estimate. Please refer to for detailed iformatio about the Aual Allowace. For more iformatio about BRASS ad how to joi A guide for members of BRASS (NR) is available o

14 07If thigs chage A guide for members If thigs chage... Circumstaces ca chage ad you may eed to kow what happes if you. Take leave If you receive statutory materity, paterity, adoptio pay or shared paretal leave, your cotributios are based o the actual pay you receive but your beefits are based o your ormal rate of pesioable pay. If for ay reaso, you ca t pay the cotributios, for example you have a period of upaid leave, Network Rail ad the Scheme may collect what is owed from your future earigs; this is kow as cotributio arrears. A guide for members o materity, paterity, paretal or adoptio leave Take a career break If you apply, ad Network Rail agrees, you ca take a career break which is upaid leave. Whilst o a career break you do ot pay pesio cotributios ad the period you are o a career break will be treated as a break i service by the Scheme. Opt-out You ca opt-out of the Scheme while still workig by askig for a opt-out form from the Network Rail Pesios Team. If you apply to stop your membership withi a moth of joiig, you will be treated as though you had ever joied. Network Rail will refud ay cotributios paid, mius adjustmets for tax ad Natioal Isurace Cotributios. If you apply to opt-out after a moth, your Scheme beefits will be preserved. You ca t rejoi the Sectio uless Network Rail ad the Pesios Committee agree, ad you may have to have a medical examiatio. Curretly Network Rail does ot permit employees to rejoi if they have opted-out of the Sectio. More olie - Read as you eed available

15 07 If thigs chage Work ad claim your beefits You must have Network Rail s permissio, ad be at least age 55, to claim your beefits while still workig for them. If you are thikig about doig so, it s importat to ote that: you will o loger be a active member of RPS 65 ad caot rejoi the Sectio; your beefits will be worth less tha if you left work ad claimed them if you are uder age 65; your pesio will be subject to icome tax but ot Natioal Isurace Cotributios; ad you will ot be eligible for RPS65 death i service cover or icapacity beefits, although a depedat s pesio may still be paid. You will also eed to check what, if ay, pesio arragemets may be available from Network Rail i the future. Retire ad start work agai You must claim all your Scheme beefits at the same time if you: There are importat tax issues to thik about if you leave work, claim your pesio beefits ad the start workig agai: either for the same employer or aother employer i the same corporate group, withi six moths of retiremet, or oe moth of retiremet if you retur to do a job which is materially differet i ature. Divorce or dissolutio of a civil partership If you separate from your parter, your pesio is likely to be cosidered alog with your other assets whe fiacial settlemets are worked out. A court order (kow as a Pesios Sharig Order) ca be made to trasfer part of the value of your RPS 65 beefits as part of the divorce or dissolutio proceedigs. If this is the case, it would mea your Scheme beefits will be reduced to provide beefits for your ex-spouse or ex-civil parter. A guide for members o divorce or dissolutio have a Protected Pesio Age ad are takig your beefits uder age 55. have worked for differet rail employers ad bee a member of their RPS Sectio. 10/16 RPS

16 08Beefits for depedats A guide for members Beefits for depedats While it s ot a topic most of us wat to discuss, it s reassurig to kow that your depedats may be eligible for RPS beefits if you die. Eligible depedats are classed as adults who depeded o you fiacially (up to a maximum of three people, excludig eligible childre) or the parter you were livig with at the date of your death. Eligible spouse is classed as your husbad or wife or your parter i a civil partership, who you were livig with at the time of your death. Legal spouse pesios may be payable eve if you are ot livig with your husbad/ wife/ parter at the time of your death. Beefits for the above could iclude: a lump sum of four times your fial average pesioable pay (less for preserved members); a depedat s pesio worth half the pesio you would have received if you had retired at age 65; ad the value of your BRASS accout. The pesios rise i lie with Orders made uder the Pesio (Icrease) Act 1971 ad Scheme Rules, ad are taxable. Please ote a depedat s pesio (excludig spouse) may be reviewed after 10 years. A depedat s pesio (icludig spouse) may be reduced if they are more tha 10 years youger tha you. More olie - Read as you eed available

17 08 Beefits for depedats Eligible childre The two yougest eligible childre ormally receive pesios util they are 18 years old. If a eligible child is disabled or cotiues i full-time educatio after they are 18, the pesio may still be paid, if your Pesios Committee agrees. This could exted up to age 23 for studets i full-time educatio. The pesios rise i lie with Orders made uder the Pesio (Icrease) Act 1971 ad Scheme Rules, ad are taxable. If there are o eligible depedat or spouse pesios to pay, each child s pesio is doubled. Lump-sum death beefit It is very importat that you keep your Nomiatio form up to date so that the Trustee kows who you would like to receive ay lump-sum death beefit that may be payable. The NR Sectio Pesios Committee decides who gets your lump-sum death beefit, but will always take your wishes ito accout providig you have a up-to-date Nomiatio form o your pesio record held by RPMI. Nomiatio form remider It is very importat to fill i a Nomiatio form. If you have already filled oe i, please cosider completig a ew Nomiatio form if your persoal circumstaces chage, or it has bee a while sice you last completed oe ad set it to RPMI. You ca do this by: completig a form olie through or requestig a form from: the Network Rail Pesios Team; or rigig the Helplie o Please ote that ay ew omiatios will replace ay previous omiatios that you have made. 10/16 RPS

18 09Take cotrol A guide for members Makig the most of your beefits Thik ahead what do you really wat out of retiremet? Use this checklist to help you get the most out of RPS 65 membership. It s importat to fill i a Nomiatio form, ad keep it up to date, so that the Trustee kows who you would like to receive death beefits from the Scheme if you die. Your Aual Pesio Estimate (APE) is tailor-made for you. Whe it arrives i the autum, please check your pesio s curret value ad the forecast of your beefits whe you retire. Cosider payig Additioal Volutary Cotributios (AVCs) ito a BRASS accout. The RPMI Helplie ca assist with geeral queries about your membership ad pesio beefits. Tel: Visit to fid out about Sectio beefits, ad dowload useful Read As You Need leaflets ad fid BRASS fud iformatio. Read all about it! Review ewsletter, which is curretly set to you up to twice a year, features pesios ews, legislatio updates ad geeral fiacial topics to help you make the most of your beefits. If you already pay ito BRASS, cosider reviewig your fud choices to make sure they re still right for you. More olie - Read as you eed available

19 10 Your tax limits A guide for members Your tax limits You ca oly build up, ad receive, a certai amout of pesio beefits before you have to pay more tax. Savig for your retiremet HM Reveue & Customs (HMRC) set a upper limit o how much tax relief you ca obtai o pesio savigs. These are called your Aual Allowace ad your Lifetime Allowace. You are strogly recommeded to get idepedet fiacial advice if you thik you will be close to, or over, your Aual Allowace or Lifetime Allowace. Please refer to for iformatio about these allowaces. What is my Aual Allowace? This is the amout you ca build up ad save tax-free i all your pesio arragemets durig the Scheme year (kow as a Pesio Iput Period or PIP). The Aual Allowace is curretly set at 40,000 (for 2016/2017). If your savigs go over this allowace, you may have to pay more tax. However, you may be able to carry forward ay uused Aual Allowace from up to three previous tax years. If you ear 110,000 per year or more you may be subject to the Tapered Aual Allowace itroduced i the 2016/17 tax year. Will my pesio savigs exceed the Aual Allowace ; ad the Payig tax o pesio savigs over the Aual Allowace limit 10/16 RPS 65 What is my Lifetime Allowace? This is the limit o the total amout you ca save i all your pesio arragemets, before you become liable to pay additioal tax, over your lifetime. This icludes ay you might have outside the Scheme (excludig State pesios). The value of the Lifetime Allowace has chaged several times sice it was set up i 2006, ad is 1 millio i the 2016/17 tax year. Flexible optios You ca cotribute to other types of pesios, for example, persoal pesios, which are totally separate from the RPS. You may wish to seek idepedet fiacial advice about these optios. Beefits at retiremet - maximum lump sum There is a limit o the cash lump sum you ca get from the Sectio, which applies to all members. You ca take a lump sum whe you take your beefits at retiremet; uder curret legislatio, the lump sum is tax-free ad set at 25% of the value of your overall beefits. A Guide for members o beefits ad cotributios tax limits 18 19

20 11 Thikig about retirig? A guide for members Thikig about retirig? Follow these four steps to start claimig your RPS beefits: Ask for a estimate Cotact the Network Rail Pesios Team ad ask for a pesios estimate which will iclude details of your optios. Or request a estimate from the RPMI Helplie o this will be based o the latest pesioable pay details that RPMI have received from Network Rail, which may ot be your curret pesioable pay. Apply for your pesio beefits Fill i a Applicatio For Paymet of Beefits form, available from the Network Rail Pesios Team or the Helplie. You may fid the Optios at retiremet sectio i this guide useful whe cosiderig your choices. Please retur your completed form to RPMI for processig alog with your origial full birth certificate ad ay other relevat certificates. Check the details After RPMI receives your form, a letter of cofirmatio is set out, showig the beefits that you will receive, depedig o your optios, ad the dates you will receive your lump sum ad first pesio istalmet. If you sed your form more tha a moth before your retiremet, RPMI will write to you, cofirmig that more details will be provided closer to the actual date you retire. Receive your pesio Whe you reach your retiremet date you will start receivig your pesio, every four weeks, for life. More olie - Read as you eed available

21 11 Thikig about retirig? Categories of member Categories are eeded to idetify how members are treated for early retiremet beefits. If you were a cotributig member o 1 July 2009, you became either a Category Oe or a Category Two member uder the Rules for the Network Rail Sectio of the Scheme. Category Oe members will be members who are Protected Persos. Other members, icludig those who have the Idefeasible Right to be a member of the Railways Pesio Scheme, will be Category Two members. Geerally, if you joied the Network Rail Sectio after 1 July 2009 (but before 1 July 2012) you will be a Category Two member. However, there are certai circumstaces where you could be classed as a Category Oe member. If you are usure ad would like to fid out which category you are i, please phoe the Helplie ad they will be able to cofirm this for you. This table shows the amout of beefit you will receive if you leave employmet ad take immediate early paymet. Pesioable service to 30 Jue 2012 From July 2012 Age Colum A Category Oe member (all beefits) ad Category Two member (beefits eared up to 30 Jue 2009) Colum B Category Two member (beefits eared o or after 1 July 2009) Colum C Members i Category Oe ad Category Two for beefits eared after 1 July % 100% 100% % 100% 93% % 100% 87% % 100% 81% % 100% 76% % 100% 71% 59 98% 94% 67% 58 96% 88% 63% 57 94% 83% 59% 56 92% 78% 56% 55 90% 73% 53% *54 87% 69% 50% *53 84% 65% 47% *52 81% 61% 45% *51 78% 58% 43% *50 75% 55% 40% If paymet is from a date i betwee birthdays, the reductio is adjusted appropriately. *Please refer to the defiitio of Miimum Pesio Age i the Glossary to check if you may be eligible to claim early retiremet pesio beefits uder age /16 RPS 65 IMPORTANT NOTE: The factors i colum B ad C may chage from time to time. You should ask for a early retiremet estimate rather tha rely o this table i the future

22 12 Optios at retiremet A guide for members Optios at retiremet You ca tailor your beefits to meet your persoal eeds whe you retire. See the optios below to work out what s best for you. Take a cash lump sum You may be able to take a lump sum, tax-free uder curret legislatio, by givig up part of your pesio (up to a limit, see the Tax Limits sectio for details). For every 1 of pesio you give up, you will receive 12 of lump sum. If you have BRASS fuds these ca be take as a lump sum, up to HMRC limits. Takig a cash lump sum will ot affect the pesios your depedats may receive if you die. Level pesio You might wat to start takig your RPS beefits before you are eligible to claim your State Pesio. If so, the level pesio optio will help eve out the chage i your icome whe you start claimig your State Pesio. How? By drawig a higher Scheme pesio before you claim your State Pesio; Ad a lower Scheme pesio after you reach State Pesio age (SPA). Please ote that the level pesio available will be based o your State Pesio age at the date you start takig the level pesio. This optio is ot available if: You are withi a year of SPA; You are over SPA; You receive a ill-health pesio; or Your pesio before or after SPA is below the miimum level. More olie - Read as you eed available

23 12 10/16 RPS 65 Optios at retiremet Extra pesio for depedats A pesio will be paid to ay qualifyig depedats or eligible childre whe you die. However you may be able to give up part of your ow pesio to provide more pesio for a amed depedat. This must be your spouse, registered civil parter or other depedat. This extra pesio depeds o your age ad your depedat s age, is taxable, ad icreases i lie with Orders made uder the Pesios (Icrease) Act 1971 ad Scheme Rules. The paymets will cotiue util your depedat dies. However, if your depedat dies before you, you ca t chage your decisio ad will still receive oly the reduced pesio. Takig your beefits early while workig You may be able to claim your beefits early (from age 55) ad cotiue workig as log as you are eligible ad Network Rail agrees. However, it s importat to ote that: Your beefits will be reduced if you are uder age 65. The early retiremet reductio factors will be applied o a cost eutral basis which is likely to result i a greater reductio tha show o page 21, eve if you are a protected perso. You will o loger be covered for the four times pesioable salary death i service lump sum, ad you will ot be eligible for ill-health beefits. Eligible depedat pesios may still be payable. Your pesio would be subject to Icome Tax but ot Natioal Isurace deductios. You also give up ay right to be a active member of the Sectio, ad you will ot be allowed to rejoi uder ay circumstaces. Additioal Volutary Cotributios If you have paid ito BRASS, you must take these beefits at the same time as your mai Scheme beefits. Alteratively you may be able to trasfer-out your BRASS fuds to a exteral pesio scheme. How your pesio is worked out Your pesio is: your fial average pesioable pay, less 75 per cet of the fial average basic State Pesio; or oe half of your fial average pesioable pay if it is more. This figure is divided by 60 ad multiplied by the umber of years ad days membership you have i RPS 65. You ca t have more tha 40 years membership. Example below for illustratio purposes oly. Fial average pay 75% fial average basic State Pesio* ( 35,000-4,652 ) x = 20,232 Maximum years membership of Scheme Your pesio icome Notes * 6, is the fial average basic State Pesio used for this example ad represets the basic State Pesio as at April Your pesio may also iclude Pesioable Restructurig Premiums (PRPs). Your pesio will be taxed i the same way as your pay is taxed. If you have membership before 7 April 1993, the pesio worked out for the period before 7 April 1993 is icreased by 5%. If you have extra membership because of a trasfer-i, you may ot receive the 5% icrease o beefits for this period of membership. You will have bee advised about this i the trasfer terms provided at the time

24 13 Combied membership A guide for members Combied membership If you were a member of the Sectio before 1 July 2012 ad you decided to switch to the ew RPS 65 terms, this makes you a combied member of the Network Rail Sectio. This is because you have service o RPS 60 terms ad o RPS 65 terms goig forward. Below is a table summarisig what this meas for you, i respect of your pesioable service up to 30 Jue 2012 ad from 1 July Your service up to Your service from Sectio pay (used to calculate cotributios ad pesio beefits) Normal Pesio Age Pesioable pay less 150% of the basic State Pesio (BSP). Curretly this is approximately 9,305 of your pesioable pay is ot icluded i your Sectio pay. Therefore, If your pesioable pay was 35,000 your Sectio pay would be 25,695. BSP usually icreases each April Pesioable pay less 75% of the basic State Pesio (BSP). Curretly this is approximately 4,652 of your pesioable pay is ot icluded i your Sectio pay. Therefore, If your pesioable pay was 35,000 your Sectio pay would be 30, You ca retire earlier or later tha your Normal Pesio Age Early Retiremet Your pesio is reduced if it commeces before age 60. Favourable early retiremet terms apply if you are a protected perso. For all other members these terms apply oly for pre-july 2009 service; after this date the terms are o a differet basis to age 60. Your pesio is reduced if it commeces before age 65 for service from 1 July Ay membership i our Sectio of the RPS before this date will be treated uder RPS 60 early retiremet terms. Early retiremet terms for all members will be cost eutral to age 65. Lump Sum Ill-health ad death i service pesio SMART Protected Perso status Automatic cash lump sum, i additio to the Scheme pesio. No automatic cash lump sum, but the optio of covertig some of your Scheme pesio to cash. Added years of membership apply to a maximum of age 65. Participatio i the SMART arragemet remais volutary. No chage to Protected Perso status. Participatio i the SMART arragemet is compulsory. You gave up part of your protected beefits where the terms above are differet to RPS 60. More olie - Read as you eed available

25 14 Importat otes A guide for members Importat otes Rules ad reports Each year, you will receive a summary of the aual report ad accouts, ad a aual summary fudig statemet for the Network Rail Sectio. You ca request your Sectio s full aual report ad accouts by writig to: Customer Services Team RPMI PO Box 300 Darligto DL3 6YJ etworkrailcsu@rpmi.co.uk Please have your pesio referece umber hady whe you cotact RPMI. You ca also request copies of other Sectio documetatio, such as the Sectio s Rules, by writig to the address above. If you are thikig of applyig to take your beefits i the ext 12 moths or have ay queries about your membership, cotact us usig the details above. If you have a complait or disagreemet The Scheme has a two-stage Iteral Disputes Resolutio Procedure (IDRP) for cosiderig complaits ad disagreemets. 10/16 RPS 65 If you have a complait, you should first write to: Head of Rail Admiistratio RPMI PO Box 300 Darligto DL3 6YJ Your complait will be carefully cosidered ad you will receive a reply withi two moths. If you are ot satisfied with the reply, you ca take your complait to the Committee. You must do this withi six moths of receivig the reply. They will cosider your complait ad cotact you withi two moths. The Pesios Advisory Service If you are ot satisfied with the reply to your IDRP complait, your first step is to take the matter to The Pesios Advisory Service (TPAS). The Pesios Advisory Service (TPAS) is a idepedet, maily volutary, orgaisatio with local advisers who are experts i pesio matters. You ca cotact TPAS at ay time to help you, or your depedats, with ay difficulties you may have with your pesio or problems that you have ot maaged to resolve with RPMI, the Trustee Compay or the Committee

26 14 Importat otes TPAS services are free of charge. Cotact: T: E: The Pesios Advisory Service 11 Belgrave Road Lodo SW1V 1RB W: The Pesios Ombudsma If you are still dissatisfied after goig through our complait process i full ad TPAS caot sort out your problems, you ca cotact the Pesios Ombudsma. The Ombudsma is idepedet ad ca ivestigate ay complait, or legal dispute, relatig to your pesio scheme membership. Please ote that the Ombudsma will expect you to have goe through our complait process before cosiderig your complait. You ca cotact the Ombudsma usig the followig details: T: E: equiries@pesios-ombudsma.org.uk The Office of the Pesios Ombudsma 11 Belgrave Road Lodo SW1V 1RB W: The Pesios Regulator The Pesios Regulator has a wide rage of powers to help put scheme matters right if problems arise. The Regulator helps with protectig members beefits with pesio schemes ad moitors the Pesio Protectio Fud. I extreme cases, the Regulator is able to fie trustees ad employers ad remove trustees from a scheme. The Pesios Regulator s address is: Napier House Trafalgar Place Brighto BN1 4DW W: Railways Pesio Scheme registratio umber: Lookig after your iterests The RPS is a registered pesio scheme with HM Reveue ad Customs. Members have valuable tax privileges, such as tax relief o cotributios, a tax-free lump sum if you choose, while some ivestmet returs are ot taxed, for example, capital gais. Joiig the Scheme The Network Rail Sectio is ope to all employees uder the age of 65 who have a legal right to joi ad to other Network Rail employees (icludig part-time employees) whose cotract of employmet allows them to joi after a qualifyig period, which is curretly five years compay service. New employees who are potetially eligible to joi the Sectio must complete a applicatio form ad sed it to the Network Rail Pesios Team who will establish eligibility to joi. The applicatio form is oly available from the Network Rail Pesios Team. E: pesios@etworkrail.co.uk T: Edig your membership Your membership will ed if you: stop workig for Network Rail; choose ot to cotiue beig a member (referred to as optig-out); claim your beefits while still workig for Network Rail; or reach 75 More olie - Read as you eed available

27 14 Importat otes Data protectio RPMI ad the Trustee Compay use your persoal details to work out ad pay your beefits. From time to time, they may eed to give your iformatio to other orgaisatios, icludig Network Rail or ay previous employer. These orgaisatios may use your iformatio for busiess purposes. Uless RPMI holds ad processes this iformatio, it caot deal with ad pay your beefits. If you have ay objectios to them usig your iformatio i the way described above, please write to the Data Protectio Officer at RPMI. If you have o objectios, they will assume that you agree to them usig your iformatio. You have the right to see the iformatio RPMI holds about you. For a small fee you ca have a copy of this persoal iformatio. The Railways Pesio Scheme was set up uder the Railways Pesio Scheme Order 1994 (SI 1994/1433) ad is available to all the compaies ivolved i the railway idustry. 10/16 RPS

28 Desiged ad produced by RPMI, Stooperdale Offices, Brikbur Road, Darligto DL3 6EH DNV Quality Assured Firm to ISO Oct 2016